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Which of the correctly notes the change in income

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Reference no: EM132813057

Brilliant, Inc. reported the following results from the sale of 24,000 units of IT-54:

Sales $528,000

Variable manufacturing costs 288,000

Fixed manufacturing costs 120,000

Variable selling costs 52,800

Fixed administrative costs 35,200

Extra Company has offered to purchase 3,000 IT-54s at $16 each. Brilliant has available capacity, and the president is in favor of accepting the order. She feels it would be profitable because no variable selling costs will be incurred. The plant manager is opposed because the "full cost" of production is $17.

Problem 1: Which of the correctly notes the change in income if the special order is accepted?

Reference no: EM132813057

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